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Showing content with the highest reputation since 07/24/2019 in Posts

  1. 8 points
    One man has 8 children. Another man has $1M. Who is happier? The man with 8 children because he doesn't want anymore.
  2. 7 points
    Lion with laughter.....
  3. 7 points
    We're not bean counters. We're legume controllers.
  4. 7 points
    Old accountants never die, they just get out of balance.
  5. 7 points
    Does Staples offer large format printing? I want to hang this on the wall for all our clients to see.
  6. 5 points
  7. 5 points
    What your client should do to comply and substantiate the S Corp(s) interest deductions and maintain basis: 1. Take out the HELOC with proceeds deposited in his personal checking account 2. Loan the HELOC proceeds to the S Corp(s) 3. Document the loans with the proper interest rates, repayment schedules etc. 4. Make sure that the S Corp(s) repay your client every month on schedule, issuing 1099INTs at the end of the year. 5. Your client should make all the HELOC repayments from his personal checking account. Clients usually want to create shortcuts i.e., make it up as they go along ,which in your clients situation is a recipe for lost deductions etc., etc ! I will leave it to others to mention cites, case law etc.
  8. 4 points
    I simply cannot let this opportunity go by without adding my two cents. A longtime client who is forever a couple of years behind in her filings called me last year after three years of not hearing a word from her. We got her 2014 and 2015 filed last year 2016 early this year and needed to file 2017 and 2018 this year as well. She and hubby have one of those wonderful hobby farms and have always gotten refunded and as a result no fines or penalties until NOW. She called me earlier this year concerned about a notice she got. She brought it in and on examination I burst into laughter as it was for some man in Colorado. We basically dismissed it. Unknown to me she had received notices concerning her 2017 return which was unfilled. She finally stirred herself to action and brought me her 2017 info along with a threatening notice from the Service. It was addressed to her husband. On checking the info and computations I noted no info for the wife. The Service computed the tax due on a single man over age 65. The couple has been married for 58 years. To my astonishment they computed tax and penalties due in excess of $8,000. I prepared their return and immediately efiled it (2017) showing tax due of $566.00. They will be penalized of course but were happy to find they did not owe over $8,000 !! I contacted the Service at the number provided and advised the agent the couple had efiled their return a day prior to the deadline outlined in the notice further advising that the return was on file at the Andover Service Center for their inspection. I frankly expect another crappy notice from the Service to arrive and the client will simply have to call them this time around if it does. It really makes you wonder how many poor souls panic and pay these notices off even though they surely are riddled with factual inaccuracies.
  9. 4 points
    Here you go, you can probably crop out the bottom portion: https://www.chicago.gov/content/dam/city/depts/cdph/tobacco_alchohol_abuse/NoSmokingECigaretteSign4282014.pdf
  10. 4 points
    Some of you may have seen in the news recently the announcement of the Equifax Breach Settlement, which has its own website, https://www.equifaxbreachsettlement.com/ The website allows you to check whether your information was exposed and if it was to file a claim. It is important that everyone check because the Equifax site which was set up back in the fall of 2017 did not work well and was very inaccurate. I have checked my family members so far and I plan to check all of my long established clients. So far my wife and my information was not exposed. However all 3 of my daughter's and one of my son in law's information was exposed. At the very least you should send an email to all of your clients urging them to go to this website and check, because if your clients are like mine, many of them are not as security conscious as they should be !
  11. 4 points
    you can order it from IRS pub 5341
  12. 4 points
    1. Install voice recognition app. 2. Press Alt and Ctrl simultaneously. 3. Clearly and distinctly enunciate: "SHAZAM!" 4. All will be revealed.
  13. 4 points
    ATX sells an add-on for this called PaperlessPlus, but I've always been happy scanning/printing PDFs to client folders, since 2003.
  14. 3 points
    First, delete, or move to a backup all files. Even though files are deleted, or moved, they can still be recovered. So, the next step is to bleach the disc with software that overwrites the disc with zeros. www.killdisc.com or anyother bleach software does this. There free versions.
  15. 3 points
    Ooooo.... it comes with a video we can play in our lobby! https://taxpayeradvocate.irs.gov/roadmap
  16. 3 points
    The widow gets 3/4 of the property at stepped-up basis. Forget depreciation, basis of the inherited portion is FMV on date of death. For her 1/4, basis is her original share of purchase price less 1/4 of the depreciation taken over the years. Hey, you're in this business because you love math, right?
  17. 3 points
    I don't use ATX any more, so I can't speak as to whether there is anything out there that integrates. I have tried a couple of file cabinet softwares over the years. Arkworks went out of business, or got bought out (I don't remember which) so I tried eFile cabinet next. I liked some of the features of the program but as they updated and improved the program I liked it lest and had more problems with it that I just never seemed to find the time to resolve. So i have gone to using the storage space on the server and just organizing files in a windows tree. Not ideal, but at least i don't have to worry about my data being held hostage if I change my subscription.
  18. 2 points
    I believe it is standard in all 50 states that only CPAs can issue audit and review financial statements, and in general, non-CPAs are limited to only compilations or products that don't rise to the level of a financial statement. Edsel needs to check his home state of TN's regulations, and KY's if he is physically conducting business there.
  19. 2 points
    Did the Kentucky bank specify as to what level of service the financial statements should be? Compilation, Review, Audit? In my state NY, only CPAs can prepare Compilations. And even then, not every CPA can prepare Reviews or Audits unless they meet state mandated requirements of 1,000 hours of auditing experience a year and undergo a mandatory peer review program.
  20. 2 points
    This will be the last windows computer I own.
  21. 2 points
    Did you read my first post ? It is a big problem if you do it this way ! Unfortunately, there were several later posts that wandered off into the weeds and confused the issue.
  22. 2 points
    I will remove the attachment and Efile the return. If accepted, i will mail the attachment. Will not hurt. My 2 cents.
  23. 2 points
    Well y'all have once again relieved me of another problem. I was unaware I had to love math to prepare taxes. An appraisal of the property by the executor ? The sucker was unaware he was an executor ! This is one of those little details he will now have to become familiar with.
  24. 2 points
  25. 2 points
    Yes, this is correct that it can be deductible on Schedule E. The default is that this borrowing would be considered "home equity debt" but may be uncoupled from that definition by "electing" to use the interest tracing rules. That election is made by reporting it on Schedule E. I would strongly advise to NOT comingle the loan proceeds with other personal funds so to have a clear and unambiguous trail of use. Reference is §1.163-10T(o)
  26. 2 points
    I tried to get a transcript of a 1095-A from the IRS. They said they do not have them and that it would have to come from the provider. Besides, once a person dies, the IRS accounts are blocked. If the IRS is requesting it, they say they will do the calculations if they don't hear from you. It usually takes a while, but they will adjust the return.
  27. 2 points
    The portal requires a separate login and DOES have the lock on the address line; I just checked. I don't see how the portal and contact page can be used to "penetrate" his computer, when neither reside on his computer. They're in the cloud. Ditto for the portal, but it also has all the encryption and login security.
  28. 1 point
    I won't go into the details, but I had similar experience recently with a B of A credit card in regards to setting up automatic payments. On the face of it their credit card website looks very professional etc, but when you go down to the next level I was going around in circles. Tried to get help from a real person on the phone, they emailed instructions telling me to do the same thing which had already not worked. I am in the process of closing this credit card and will never do business with B of A again. It's a tossup as who is the worst B of A or Wells Fargo !
  29. 1 point
    The land doesn't receive the stepped up basis but the corp stock does for his widow. To sell the farm land and flow through the stepped up basis, the company needs to be shut down in the same calendar year (the company reports a gain via the K-1 and then the widow reports an essentially equal loss on liquidation of shares). The attorney's know this but are supposedly moving the farmland out of the corp before selling it which I believe is a problem.
  30. 1 point
    There is no requirement for active involvement except in for the rental safe harbor rules.
  31. 1 point
    Your post implies that your client's S Corp isn't an operating business, but instead is just a pass thru for these various investments ? I have attended seminars and done way more reading and thinking about this issue than any other tax issue, since I passed the EA Exam back in 1992 ! The real question is " Does the ownership of these investments by a passive S Corp deny your client the use of QBI deductions on their 1040 when if your client owned these investments directly the QBI deductions would be clearly allowable ? I don't have a cite for you, but I think the intent of the law and the subsequent rules and regulations would allow you to combine all of the QBI numbers from the various investments onto the S Corps K-1 s and let them flow to your client's 1040. It's what I would do if this was my client.
  32. 1 point
    Did your client's father have any estate return filed? Can the family remember WHICH YEAR the father died?
  33. 1 point
    Correct name, wrong SSN! Possibly an input error. One possible scenario - input clerck started on student's info, took a break and flipped over form; came back and saw on screen cursor in SSN field; continued from ther inputting wrong info. I discovered something like this when a was the reviewer of CP2000's for HRB . Employer had issued two different W-2's on the same page. One had the correct person, the other was for a different employee. Preparer must have though they were duplicates and carelessly entered the wrong one. Since the correct one hadn't been reported, it triggered a CP2000.
  34. 1 point
    https://thetaxbook.net/internal-revenue-code/4980D
  35. 1 point
    I did not say that SFR returns could not be amended, because you did not mention them. It seemed as if you were talking about unfiled years. So, if 2011, 2012 were SFR'd, they can be amended as is any year that has a balance due, no matter how far back. However BTW, I have noticed a loophole in the treatment of unfiled returns. I do not think I have ever encountered a SFR if an extension had been filed for that year, even if subsequently the return never got filed. I think we are going to be seeing far fewer SFR's. In 2017, the ASFR unit was scaled back to shift more resources to the Refund Hold program. TIGTA was not in agreement with that decision. https://www.treasury.gov/tigta/press/press_tigta-2017-27.htm
  36. 1 point
    Or since a rental was involved, do they have a partnership and would a 754 election be required?
  37. 1 point
    Tax Pro Today has an article about 2019 Tax Software enhancements https://www.taxprotoday.com/news/the-2019-tax-prep-software-comparison-guide?feed=00000158-3f5d-dcbd-abf8-ff7f12270000 Curiously Wolters Kluwer does not have any mention of ATX ?
  38. 1 point
    According to the IRS, once the ITIN is renewed, "any exemptions and credits will be repaid" See Q15 https://www.irs.gov/individuals/itin-expiration-faqs
  39. 1 point
  40. 1 point
    I regularly make estimated payments. Because my income comes in irregularly I have for years attached a 2210 explaining this. No problem until this year. The PPS rep waived the entire thing explaining that the 2018 tax changes were largely the reason. The Service appeared to me to have completely ignored the 2210 I sent noting I had incorrectly computed the form and simply dividing my total income by four. Go figure.
  41. 1 point
  42. 1 point
    The IRS beginning this month, eliminated faxing of transcripts. They will be sent by mail unless you request delivery to the IRS online mailbox. If you have a 2848, or 8821 on file, you can access the mailbox, which has a nice beaurocratic name, (Secure Object Repository [SOR]), by logging in on the e-services page. The login button is at the lower right of the page. They can then be downloaded, or printed. It takes about 3 hours for the transcripts to be delivered to the mail box. I find it superior than fax as they can be selected in order and also do not have cover pages.
  43. 1 point
    The availability of IRS transcripts, depends on the type of transcripts requested. Wage & Income transcripts, which are the items reported by 3rd parties, W-2's, 1099's, etc, are available for 10 years. (There is no state info on these, such as state withholding tax) Account transcripts, which report the the balance due, penalties, payments, interest are available for at least ten years, and indefinnitely if there is any balance due. Return transcripts are only available for the last 3 years. This would include late filed returns that were filed in the last 3 years. Record of Account - combines the Account Transcript with the Return Transcript, but, again, is only available for the last 3 years. The IRS has a lookback period of 6 years, with a cutoff at the end of May each year. So, the returns that they would require now are 2013-2018. Next May 2014 will fall off. I have had clients that wanted to file returns older than 6 years, but the IRS will not accept them and will mail them back.
  44. 1 point
    My browser/monitors have no trouble with that picture. I can clearly see a number of items under it including the quick contact information. If you want the entirety of the links, etc., to be clearly seen with no scrolling - then, yeah, you might want to shrink the picture size a bit. Have you (or has anyone else) checked it on a phone? ...I just did; looks good on a phone, too!
  45. 1 point
    If the loan documentation/ substantiation isn't done then two more potential basis problems may arise. 1. Additional loan basis will not be created potentially limiting future deduction of losses. 2. If then client dumps the HELOC proceeds directly into the S Corp(s) without documentation and makes the HELOC repayments from the S Corp(s) then the HELOC repayments will be considered distribution of profits which will further reduce basis potentially limiting future deduction of losses. The only way these S Corp(s) get a free and clear interest deduction is if the SCorp(s) are the borrowers.
  46. 1 point
  47. 1 point
    go the elections form and then on tab for depreciation you will find it. down towards bottom of page.
  48. 1 point
  49. 1 point
    Just copy and paste to address bar, mwrightea...or click on this. http://trctax-ea.com/profile/
  50. 0 points
    I moved into this new place (not new - old place actually) in the fall of 2015. So this will mark 4 years in September so I feel that I'm "established" here. In April some new people moved into the apartment upstairs. It's a fairly small apartment and there are 4 of them, which includes a toddler and a baby. In the front, where you approach my door, their door is right next to mine. There a small exterior alcove there as you enter, where the mailboxes are mounted, and where I have a rug to catch some winter mud. But it's not really a very big spot. And these people are in it all the time. Smoking there cigarettes and vapes. They put the baby in a stroller that sits at the very bottom of the stairs just inside their door and they sit out there and smoke. I AM SO ANNOYED! I have said something to the landlord twice. And each time I thought the problem was fixed. But after a few days, they are right back out there again. They are not real loud or obnoxious. They are not friendly. But they just stand around or sit around and smoke. Let alone the butts in the flower/tree area near the street. UGH! I don't know what to do about this one. I don't want to be a total jerk, but - come on!
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